$3-2$ Identifying Audit Opinions and Circumstances for Departure

The following are excerpted sentences and phrases from audit reports issued by independent public accounting firms.

a$.($Scope Paragraph$)$

Except as described in the following paragraph $...$

$($Explanatory Paragraph$)$

Because of insufficient records we were not able to examine sufficient evidence in support of dividend income received from a short$-$term investment, and we were unable to satisfy ourselves as to the dividend income by means of other procedures.

$($Opinion Paragraph$)$

In our opinion, except for the effect of the matter described in the preceding paragraph, the financial statements referred to above present fairly $...$

b$.($Explanatory Paragraph$)$

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note $11$ to the financial statements, under existing circumstances there is substantial doubt as to the ability of the company to continue as a going concern.

c$.($Explanatory Paragraph$)$

As explained in Note $12$ to the financial statements, certain adjustments have been made to the financial statements to conform to generally accepted accounting principles. These adjustments have not been recorded in the books.

d$.($Explanatory Paragraph$)$

As disclosed in Note $8$ to the financial statements, the company has adopted the first$-$in$,$ first$-$out method of determining inventory costs, whereas it previously used the last$-$in$,$ first$-$out method. Although use of the first$-$in$,$ first$-$out method is in conformity with generally accepted accounting principles, in our opinion the company has not provided reasonable justification for seeking a change as required by Opinion $20$ of the Accounting Principles Board.

$($Opinion Paragraph$)$

In our opinion, except for the change in accounting principles discussed in the preceding paragraph, the financial statements referred to above present fairly $...$

Required: For each report, identify the type of opinion $($for example, "qualified"$)$ and the circumstance for departing from the standard wording of an unqualified opinion $($for example, "departure from GAAP"$).$